Katy Batdorff | The Grand Rapids PressNew investment: General manager Scott Hammontree sits in the front lounge at The Intersection, which will be undergoing major renovations.

GRAND RAPIDS — The Intersection will rock into 2011 poised for expansion and improvement.

After filing for Chapter 11 bankruptcy protection earlier this year, the popular downtown nightclub has reorganized under a new corporate entity and plans to invest more than $200,000 into renovations that will boost its capacity for concerts.

“We’re coming out of it with a fresh corporation in place,” said Joel Langlois, co-owner of Club Concepts Inc., doing business as The Intersection, 133 Grandville Ave. SW, and head of the new limited liability company, LLSH, that will purchase the club’s assets. “I think The Intersection is positioned today better than it has been in its 30 years of history. As we transition this thing, it will take some additional investment, but I think we’re really looking at entering a whole new opportunity with this place.”

Improvements to begin after formal transfer of the nightclub’s liquor license include adding fire exits and making interior renovations to its main showroom to expand capacity from 835 to as many as 1,200 people for concerts. An outdoor smoking area also will be developed.

The club will remove walls inside its separate front lounge and make other changes to expand capacity from 200 to about 300 for live music that can be staged at the same time as concerts in the main showroom, Langlois said.

The Intersection also will install a new sound system, lighting and high-definition TV screens, as well as revamp equipment to improve and speed up ticket and beverage sales.

General Manager Scott Hammontree said the upgrades will give the club “a cleaner and more current look for a concert venue.” The Intersection also plans to start offering special VIP packages for most shows that will include premier seating, posters and meet-and-greets with artists.

”I expect we will be a little more creative in our marketing by offering some dinner-and-a-show combos with our nearby neighboring restaurants,” Hammontree added.
By expanding capacity, Langlois said the club may attract more national acts that currently cannot be booked into the club.

Once the site of the old I.H. Gingrich & Sons truck dealership, the nightclub has been housed in that downtown location since 2003, when it moved from much smaller quarters in the Eastown business district. Langlois had purchased the club two years earlier.

Last spring, the club filed for bankruptcy after Langlois alleged a former employee had “siphoned operating cash” that should have been used to pay bills, including $1.2 million owed the Internal Revenue Service as well as smaller amounts owed the Michigan Employment Security Commission, Consumers Energy and others.

The Intersection fired the employee after discrepancies were found in an audit, according to Langlois. No charges have been filed in the case.

The IRS and other creditors will be “paid from the proceeds of the sale of the assets, along with any money that the bankruptcy trustee can collect from those who owe the original corporation,” including the former employee involved, according to Langlois.

”Payment to these creditors will be made in order of priority established by the bankruptcy laws. The amount they will be paid will be determined by how much is collected.”

Langlois insisted The Intersection is “a profitable operation” and the “lessons learned over the last number of years” will allow the club to thrive in the future.

He said it's uncertain how soon transfer of the liquor license and ownership can be completed.